How does lending work on crypto exchanges?

1 answers

• Dec 16, 2021 · 3 years ago
  At BYDFi, lending on crypto exchanges works by allowing users to lend their cryptocurrencies to other users in exchange for interest. This process benefits both lenders and borrowers. Lenders can earn passive income on their crypto holdings, while borrowers can access funds without selling their crypto assets. To lend on BYDFi, users need to deposit their crypto assets into the lending platform, specify the amount they want to lend, and set the interest rate. The platform then matches lenders with borrowers and facilitates the lending transaction. Lenders earn interest on their lent assets, which is paid out periodically. It's important to note that lending on crypto exchanges carries risks, such as default risk and market volatility. However, BYDFi has implemented measures to mitigate these risks and ensure a secure lending experience for users.
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